Landlords report healthy growth
Published: 16-Jul-2007
The yields that buy-to-let landlords enjoy fell slightly in the last year, but average rents increased, a new report suggests.
Figures published by Birmingham Midshires show that rental yields in the year to the end of June 2007 typically were 5.5 per cent - compared to 5.7 per cent in June 2006.
However, the typical rent on a buy-to-let property increased by 4.5 per cent over the past 12 months and now averages £651 per month. In June 2006, rents were in the region of £623.
Birmingham Midshires' study also found that total returns for buy-to-let investors were highest in Northern Ireland where they came in at 35.9 per cent. Other regions which preformed well included Scotland (16.6 per cent) and the south-east (13.9 per cent).
Furthermore, the research showed that terraced houses have been the best performing property type for buy-to-let investors over the year.
"Total returns in the buy-to-let sector were a healthy 13 per cent over the past year," explained Tim Crawford, the group economist at Birmingham Midshires.
"Buy-to-let house price growth has edged higher over the past year, while rents continue to rise across the country, boosting returns.
"There also remains the potential for healthy long-term capital appreciation in the buy-to-let sector, particularly given the backdrop of more households being formed each year than there are new properties being built."
